The law of

Supply and
two ways to
illustrate
supply
 TABLE OF CONTENTS

01
THE LAW OF
SUPPLY

02
TWO WAYS TO
ILLUSTRATE
SUPPLY
 01
THE LAW OF
SUPPLY
 THE LAW OF
SUPPLY

1, Law of supply states that other things being equal, the higher the
price, the greater the quantity supplied or lower the price and vice versa.
 THE LAW OF
DEMAND
2, The quantities of any commodity is positively related to the
commodities own price.
 THE LAW OF
SUPPLY

3, There is a direct relationship between

price and quantity suppliied:

● Quantity supplied rises as price rises,

other things constant.
● Quantity supplied falls as price falls,
other things constant.
 THE LAW OF
DEMAND

4, The law of supplyis accounted for

by 2 factors:

 When prices rise, firms substitute

production of one good for another.

 Assuming firms’ costs are constant, a

higher price means higher profits.
 02
TWO WAY TO
ILLUSTRATE
DEMAND
Supply Willing to offer to Supply What firm offer for
the market at sale, not
various prices nescessarily to
during period of what thay
time succeed in selling

Able to offer to
Is a flow i.e as per
the market at
unit of time, per
various prices
day, per week, or
during period of
per year
time
Thank you for listening and
watching